United Parcel Service, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

9 Months Ended

Sep. 30, 2011

NOTE 5. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment as of September 30, 2011 and December 31, 2010 consist of the following (in millions):


	2011			2010
Vehicles	$	5,678		$	5,519
Aircraft (including aircraft under capitalized leases)		14,608			14,063
Land		1,118			1,081
Buildings		3,085			3,102
Building and leasehold improvements		2,928			2,860
Plant equipment		6,755			6,656
Technology equipment		1,582			1,552
Equipment under operating leases		102			122
Construction-in-progress		422			265

		36,278			35,220
Less: Accumulated depreciation and amortization		(18,697	)		(17,833	)

	$	17,581		$	17,387

In the second quarter of 2011, we recognized a pre-tax loss from certain real estate transactions within our U.S. Domestic Package segment of $15 million ($11 million after-tax) and a pre-tax gain from real estate transactions within our Supply Chain & Freight segment of $48 million ($31 million after-tax). In the third quarter of 2010, we recognized a pre-tax gain of $109 million ($61 million after-tax) on the sale of real estate within our U.S. Domestic Package segment.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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